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Commuting costs and labor force retirement

Author

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  • Jorge González

    (Universidad de Alicante)

Abstract

This paper studies whether the increase in home-workplace separation observed among U.S. older male workers in the last decades of the 20th century can partly account for earlier retirement. We first extend a conventional residential location-labor supply model in order to examine potential mechanisms linking commuting and retirement. After showing that, as a consequence of the urban residential equilibrium, it is possible that workers residing further from the workplace retire earlier, PSID data and an instrumental variables approach are combined in order to assess the nature and strength of the relation.

Suggested Citation

  • Jorge González, 2008. "Commuting costs and labor force retirement," Working Papers. Serie AD 2008-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2008-19
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    References listed on IDEAS

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    More about this item

    Keywords

    Retirement. Commuting. Instrumental variables.;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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